Mastercard wins US patent to speed up crypto payments, as the wide difference in payment processing times between fiat and crypto puts cryptocurrencies at a “disadvantage.”
18 July, AtoZ Markets – One of the US credit card market giants, Mastercard, has won a patent for a method of speeding up cryptocurrency payments.
Mastercard Wins US Patent To Speed Up Crypto Payments
The US Patent and Trademark Office (USPTO) has published a document yesterday that explains that cryptocurrencies have “seen increased usage over traditional fiat currencies by consumers who value anonymity and security.” At the same time, nevertheless, the wide difference in payment processing times between fiat and crypto puts cryptocurrencies at a “disadvantage.”
The patent further states:
“There is a need to improve on the storage and processing of transactions that utilize blockchain currencies. It often takes a significant amount of time, around ten minutes, for a blockchain-based transaction to be processed … Conversely, traditional fiat payment transactions that are processed using payment networks often have processing times that are measured in nanoseconds …
Therefore, many entities, particularly merchants, retailers, service providers, and other purveyors of goods and services, may be wary of accepting blockchain currency for products and participating in blockchain transactions.”
How will Mastercard reduce Crypto transaction times?
In a bid to reduce these transaction times, the company plans to offer a new type of user accounts to transact in cryptocurrencies via existing systems for fiat currencies. The account would link a series of profiles able to spot a users’ “fiat currency amount, a blockchain currency amount, an account identifier and an address.”
The transactions would utilize the fiat currency’s payment rails and security features. However, each transaction would represent a cryptocurrency.
Mastercard adds that by processing transactions made with cryptocurrencies, “payment networks may be able to evaluate the likelihood of fraud and assess risk for blockchain transactions using existing fraud and risk algorithms and information that is available to payment networks, such as historical fiat and blockchain transaction data, credit bureau data, demographic information, etc., that is unavailable for use in blockchain networks.”
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